Profits grow at JCB as market outlook becomes more uncertain

Turnover and profits increased in 2023 but full-year market outlook for 2024 looks less positive

PROFITS at construction equipment manufacturer JCB rose to £805.8 million in 2023 (2022: £557.7 million), the company announced today. Sales turnover grew to £6.5 billion (2022: £5.7 billion) and machine sales increased to 123,228 (2022: 105,148). The Group maintained a strong balance sheet with no net borrowings throughout 2023.

JCB’s chief executive officer, Graeme Macdonald, said: ‘Despite a global market for construction and agricultural machinery which shrank by 4.3% in 2023, JCB’s sales increased by 14% to £6.5 billion.

‘North America remains the world’s largest market for construction equipment and JCB’s sales there grew strongly during 2023. JCB’s business in India also performed well in a growing market, and while the UK market remained largely flat last year, JCB increased their share of the market.

‘The full-year market outlook for 2024 is less positive, with challenging conditions in the UK and Europe, particularly in Germany where economic activity has declined sharply during 2024. In the UK, house-building activity has contracted, which is having a negative impact on machine utilization.’

JCB chairman Anthony Bamford said: ‘Our family company, JCB, continues to invest both in new production capacity and in product innovation. Earlier this year, we broke ground on our new factory in San Antonio, Texas. The company’s ongoing investment in innovative new machines, such as the recently launched JCB Pothole Pro, together with our continued focus on the development of hydrogen combustion engines for our equipment in the future, puts JCB in a strong position for further long-term growth.’